Binance’s auditors removed a report on the financial health of Binance from the internet and dropped it as a client.
The digital currency has dropped as low as 2pc and is down over 60pc so far this year.
Binance’s auditors have removed a report on the financial health of the company that was found online and dropped the cryptocurrency giant from their client list.
According to reports, bitcoin’s price fell by 2pc today.
This morning, a website that featured a Mazars “proof of Reserves” report showing how much financial collateral Binance had was deleted.
A Binance spokesperson said that Mazars, who previously audited accounts for former US President Donald Trump, had “temporarily” stopped working with digital currency companies.
“Mazars indicated that they will temporarily suspend their work with all their crypto clients worldwide. “Unfortunately, this means that we won’t be able to collaborate with Mazars at the moment,” the spokesperson said.
The report was presented by the cryptocurrency giant to calm market panic after the collapse of rival FTX. It included allegations of fraud and had been prepared. Sam Bankman-Fried was FTX’s former chief operating officer. He has denied any wrongdoing.
Binance reported that at least 97pc of the company’s deposits were backed by cryptocurrency assets. These assets are stored on a blockchain which is a type of digital ledger.
This week, the cryptocurrency company was affected by outflows of more than $6bn (£4.9bn), as investors become nervous about the state of the largest digital coin companies in the world.
One former US regulator called it a “red flag” because it did not include a complete or official audit.
Binance stated that “We embrace more transparency” and is looking at how to best provide these details over the next months.
